Translation of excerpted sections Consolidated …...Financial Statements and Main Notes (6) Notes...

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Consolidated Financial Statements for the Fiscal Year Ended March 31, 2019

(IFRS)

May 15, 2019 Stock exchange listing: Tokyo

(URL https://www.saisoncard.co.jp)

Listed company name: Credit Saison Co., Ltd. Code number: 8253 Representative: Masahiro Yamashita / President and COO Inquiries to: Hiroaki Tanaka / General Manager, Corporate Planning Dept.; Phone: (03) 3988(2110) Scheduled date of the Ordinary General Meeting of the Shareholders: June 20, 2019 Scheduled date to submit Securities Report: June 20, 2019 Scheduled date to commence dividend payments: June 21, 2019 Preparation of supplementary material on financial results: Yes Holding of investor meeting: Yes (for institutional investors and analysts)

Note: All amounts are rounded down to the nearest million yen. 1. Consolidated Results for the Fiscal Year Ended March 31, 2019 (April 1, 2018 to March 31, 2019)

(1) Consolidated Operating Results (% represents year-on-year change)

Net revenue Business profit

Profit before tax

Profit

Profit attributable to

owners of parent

Total comprehensive

income

(Millions of yen)

(%) (Millions of yen)





(%)

FY2018 304,855 4.0 52,233 (8.9) 45,763 (13.4) 29,340 (23.6) 30,517 (20.6) 19,127 (51.9)

FY2017 293,250 – 57,314 – 52,850 – 38,386 – 38,446 – 39,672 –

Basic earnings per

share Diluted earnings per

share

Return on equity

attributable to owners of

parent

Profit before tax/total assets

Business profit/net revenue

(Yen) (Yen) (%) (%) (%)

FY2018 186.84 – 6.2 1.5 17.1 FY2017 235.39 – 8.2 1.9 19.5

(Reference) Share of profit (loss) of investments accounted for using equity method FY2018 7,355 million yen FY2017 12,306 million yen

(2) Consolidated Financial Position

Total assets Total equity Equity attributable

to owners of parent

Ratio of equity attributable to

owners of parent to total assets

Equity attributable to owners of

parent per share

(Millions of yen) (Millions of yen) (Millions of yen) (%) (Yen)

FY2018 3,212,465 491,741 490,998 15.3 3,006.14 FY2017 2,946,978 490,849 488,883 16.6 2,993.18

(3) Consolidated Cash Flows

Cash flows from

operating activities Cash flows from

investing activities Cash flows from

financing activities

Cash and cash equivalents at end of

period (Millions of yen) (Millions of yen) (Millions of yen) (Millions of yen)

FY2018 (192,438) (40,313) 242,211 82,642 FY2017 (40,023) (45,134) 92,945 73,179

《Translation of excerpted sections》

http://www.saisoncard.co.jp/

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2. Dividends

Annual dividends

Total of dividends (Full year)

Payout ratio (Consolidated)

Ratio of dividends to

equity attributable to

owners of parent

(Consolidated)

End of first

quarter

End of second quarter

End of third

quarter

End of fiscal year

Annual

(Yen) (Yen) (Yen) (Yen) (Yen) (Millions of yen) (%) (%)

FY2017 – 0.00 – 35.00 35.00 5,719 14.9 1.2 FY2018 – 0.00 – 45.00 45.00 7,353 24.1 1.5

FY2019 (Projected) – 0.00 – 45.00 45.00 25.3

3. Consolidated Earnings Forecasts for Fiscal 2019 (April 1, 2019 to March 31, 2020) (% represents year-on-year change)

Net revenue Business profit


owners of parent

Basic earnings per

share (Millions of yen) (%) (Millions of yen) (%) (Millions of yen) (%) (Yen)

First six months 157,500 － 21,000 － 14,000 － 85.71

FY2019 322,000 5.6 42,500 (18.6) 29,000 (5.0) 177.55

Notes

(1) Changes in significant subsidiaries during fiscal year: None

(Changes in specified subsidiaries resulting in changes in the scope of consolidation) (2) Changes in accounting policies and changes in accounting estimates

a. Changes in accounting policies required by IFRS: Yes

b. Changes in accounting policies other than a. above: None

c. Changes in accounting estimates: None

(3) Number of shares issued (common shares):

a. Number of share issued at the end of fiscal year (including treasury shares):

FY2018: 185,444,772 shares FY2017: 185,444,772 shares

b. Treasury shares at the end of fiscal year:


c. Average number of shares during the term:


Reference: Summary of Non-Consolidated Financial Statements 1. Results for Fiscal 2018 (April 1, 2018 to March 31, 2019) (1) Operating Results (% represents year-on-year change)

Operating revenue Operating profit Ordinary profit Profit

(Millions of yen) (%) (Millions of yen) (%) (Millions of yen) (%) (Millions of yen) (%)

FY2018 259,018 3.7 33,543 2.0 39,634 2.0 25,875 16.6 FY2017 249,865 4.7 32,900 35.3 38,871 37.8 22,190 5.4

(Reference) Volume of new contracts: FY2018 8,814,054 million yen FY2017 8,409,848 million yen

Earnings per share Earnings per share

(diluted) (Yen) (Yen)

FY2018 158.35 – FY2017 135.80 –

(2) Financial Position

Total assets Net assets Equity ratio Net assets per share (Millions of yen) (Millions of yen) (%) (Yen)

FY2018 3,107,284 407,533 13.1 2,493.92 FY2017 2,831,296 396,831 14.0 2,428.43

(Reference) Equity: FY2018 407,533 million yen FY2017 396,831 million yen

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2. Earnings Forecasts for Fiscal 2019 (April 1, 2019 to March 31, 2020)

(% represents year-on-year change)

Operating revenue Operating profit Ordinary profit Profit Earnings per share (Millions of yen) (%) (Millions of yen) (%) (Millions of yen) (%) (Millions of yen) (%) (Yen)

First six months 133,600 4.4 10,800 (27.6) 13,800 (24.2) 22,000 86.9 134.63

FY2019 274,200 5.9 24,400 (27.3) 30,000 (24.3) 33,000 27.5 201.95

(Reference) Volume of new contracts: FY 2019 First six months 4,558,000 million yen FY 2019 Full Year 9,379,000 million yen

- This Consolidated Financial Statements for the Fiscal Year Ended March 31, 2019 are exempt from audit conducted by

certified public accountants or an audit corporation.

- Proper use of earnings forecasts, and other special matters

(Caution regarding forward-looking statements, etc.)

The above consolidated and non-consolidated earnings forecasts include future prospects, assumptions on which

plans will be based and forecasts from the date this document was released. The actual results may differ from the

above earnings forecasts due to various factors.

(Means of obtaining supplementary material on financial results)

The Company provides English translations of supplementary materials on its businesses and performance and its

financial statements (excerpted sections only) on its website.

(Adoption of International Financial Reporting Standards (IFRS))

The Group adopted International Financial Reporting Standards (IFRS) from the fiscal year ended March 31, 2019.

Accordingly, financial results for fiscal year ended March 31, 2018, are presented based on IFRS. Please note that

financial results in Summary of Non-Consolidated Financial Statements are presented under Japanese GAAP.

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3. Consolidated Financial Statements

(1) Consolidated Balance Sheets

(Millions of yen)

IFRS transition date

(As of April 1, 2017) As of March 31, 2018 As of March 31, 2019

Assets

Cash and cash equivalents 65,465 73,179 82,642

Trade and other receivables 2,012,153 2,154,678 2,393,197

Inventories 133,180 137,486 151,385

Operational investment securities 32,878 35,957 39,973

Investment securities 85,787 100,179 91,553

Other financial assets 9,646 11,947 11,916

Property, plant and equipment 30,798 30,221 29,341

Intangible assets 204,463 220,609 219,972

Investment property 42,768 49,970 56,683

Investments accounted for using

equity method 81,936 88,518 92,752

Deferred tax assets 38,446 30,679 32,148

Other assets 8,277 13,549 10,897

Total assets 2,745,804 2,946,978 3,212,465

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IFRS transition date

(As of April 1, 2017) As of March 31, 2018 As of March 31, 2019

Liabilities and equity

Liabilities

Trade and other payables 241,308 299,714 314,729

Financial guarantee debt 6,465 7,396 8,305

Bonds and borrowings 1,857,074 1,956,979 2,203,818

Other financial liabilities 15,171 20,599 28,441

Income taxes payable 9,544 5,044 3,120

Provision for point card certificates 94,033 101,319 104,963

Provision for loss on interest

repayment 30,567 23,114 17,762

Other reserves 922 1,147 1,530

Deferred tax liabilities 814 1,013 1,025

Other liabilities 33,013 39,801 37,026

Total liabilities 2,288,917 2,456,129 2,720,724

Equity

Share capital 75,929 75,929 75,929

Capital surplus 85,630 85,629 85,642

Retained earnings 311,539 344,291 360,303

Treasury shares (52,879) (52,880) (52,881)

Other components of equity 34,619 35,913 22,004

Total equity attributable to owners of

parent 454,838 488,883 490,998

Non-controlling interests 2,047 1,965 743

Total equity 456,886 490,849 491,741

Total liabilities and equity 2,745,804 2,946,978 3,212,465

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(2) Consolidated Statements of Income

(Millions of yen)

FY2017

(April 1, 2017 to

March 31, 2018)

FY2018

(April 1, 2018 to

March 31, 2019)

Revenue

Income from the credit service business 221,049 226,250

Income from the Lease business revenue 12,860 12,579

Income from the finance business 35,536 39,231

Revenue from the real estate related business 37,388 42,098

Revenue from the entertainment business 51,272 50,827

Finance income 223 854

Total 358,331 371,842

Of interest income － 107,221

Cost of sales

Cost of the real estate related business 23,095 24,921

Cost of the entertainment business 41,984 42,066

Total 65,080 66,987

Net revenue 293,250 304,855

Selling, general and administrative expenses 214,026 220,974

Impairment losses on financial assets 29,456 34,088

Finance costs 9,211 9,878

Share of profit of investments accounted for using equity

method 12,306 7,355

Other income 13,434 4,138

Other expenses 13,446 5,643

Profit before tax 52,850 45,763

Income tax expense 14,463 16,423

Profit 38,386 29,340

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(Millions of yen)

FY2017

(April 1, 2017 to

March 31, 2018)

FY2018

(April 1, 2018 to

March 31, 2019)


Owners of parent 38,446 30,517

Non-controlling interests (59) (1,176)

Profit 38,386 29,340

Earnings per share

Basic earnings per share 235.39 186.64

Diluted earnings per share －－

Reconciliation from profit before tax to business profit

(Millions of yen)

FY2017

(April 1, 2017 to

March 31, 2018)

FY2018

(April 1, 2018 to

March 31, 2019)


Reconciliations (Other income) (8,812) －

Reconciliations (Other expenses) 13,277 5,517

The adjustment amount for financial assets by applying the

effective interest rate method － 951

Subtotal 4,464 6,469

Business profit 57,314 52,233

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(3) Consolidated Statements of Comprehensive Income

(Millions of yen)

FY2017

(April 1, 2017 to

March 31, 2018)

FY2018

(April 1, 2018 to

March 31, 2019)

Profit 38,386 29,340

Other comprehensive income

Items that will not be reclassified to profit or loss

Net change in fair value of equity instruments

designated as measured at fair value through

other comprehensive income － (8,963)

Share of other comprehensive income of investments

accounted for using equity method － 62

Items that may be reclassified to profit or loss

Net change in fair value of equity instruments

designated as measured at fair value through other

comprehensive income 5,686 －

Financial assets measured at fair value through other

comprehensive income － (7)

Effective portion of cash flow hedges 191 (1,540)

Exchange differences on translation of foreign

operations (40) (28)

Share of other comprehensive income of investments

accounted for using equity method (4,497) 265

Total other comprehensive income, net of tax 1,339 (10,213)

Comprehensive income 39,726 19,127

Comprehensive income attributable to

Owners of parent 39,798 20,314

Non-controlling interests (72) (1,186)

Comprehensive income 39,726 19,127

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(4) Consolidated Statements of Changes in Equity

FY2017 (April 1, 2017 to March 31, 2018)

(Millions of yen)

Equity attributable to owners of parent Non–

controlling

interests Total

Share

capital Capital

surplus Retained

earnings Treasury

shares

Other

component

s of equity

Total

Balance as of April 1, 2017 75,929 85,630 311,539 (52,879) 34,619 454,838 2,047 456,886

Profit 38,446 38,446 (59) 38,386

Other comprehensive income 1,351 1,351 (12) 1,339

Comprehensive income – – 38,446 – 1,351 39,798 (72) 39,726

Purchase of treasury shares (1) (1) (1)

Disposal of treasury shares – –

Dividends (5,719) (5,719) (5,719)

Transfer from other

components of equity to

retained earnings 57 (57) – –

Changes in ownership

interest in subsidiaries (0) (32) (32) (10) (43)

Total transactions with owners – (0) (5,693) (1) (57) (5,753) (10) (5,764)

Balance as of March 1, 2018 75,929 85,629 344,291 (52,880) 35,913 488,883 1,965 490,849

FY2018 (April 1, 2018 to March 31, 2019)

(Millions of yen)

Equity attributable to owners of parent Non–

controlling

interests Total

Share

capital Capital

surplus Retained

earnings Treasury

shares

Other

component

s of equity

Total

Balance as of April 1, 2018 75,929 85,629 344,291 (52,880) 35,913 488,883 1,965 490,849

Cumulative effect of

accounting change (9,148) (3,343) (12,491) (12,491)

Restated balance 75,929 85,629 335,143 (52,880) 32,569 476,391 1,965 478,357

Profit 30,517 30,517 (1,176) 29,340

Other comprehensive income (10,203) (10,203) (10) (10,213)

Comprehensive income – – 30,517 – (10,203) 20,314 (1,186) 19,127

Purchase of treasury shares (0) (0) (0)

Disposal of treasury shares (0) 0 0 0

Dividends (5,719) (5,719) (5,719)

Transfer from other

components of equity to

retained earnings 362 (362) – –

Changes in ownership

interest in subsidiaries 13 13 (36) (23)

Total transactions with owners 12 (5,357) (0) (362) (5,706) (36) (5,742)

Balance as of March 1, 2019 75,929 85,642 360,303 (52,881) 22,004 490,998 743 491,741

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(5) Consolidated Statements of Cash Flows

(Millions of yen)

FY2017

(April 1, 2017 to

March 31, 2018)

FY2018

(April 1, 2018 to

March 31, 2019)

Cash flows from operating activities


Depreciation and amortization 13,528 23,660

Interest and dividend income (1,611) (2,150)

Interest expenses 8,160 9,245

Share of loss (profit) of investments accounted for using

equity method (12,306) (7,355)

Loss (gain) on sales of investment securities (8,536) －

Loss (gain) on valuation of investment securities 102 1,054

System transfer cost 12,969 3,299

Decrease (increase) in trade and other receivables (140,801) (252,393)

Decrease (increase) in inventories (4,305) (13,898)

Decrease (increase) in investment securities for sale (3,344) (1,551)

Increase (decrease) in trade and other payables 55,813 18,248

Increase (decrease) in provision for point card

certificates 7,286 3,643

Increase (decrease) in provision for loss on interest

repayment (7,453) (5,352)

Increase (decrease) in financial guarantee liabilities 930 1,260

Other 6,303 (1,831)

Subtotal (20,413) (178,356)

Interest and dividends received 3,223 4,304

Interest paid (9,137) (9,325)

Income taxes refund 64 820

Income taxes paid (13,759) (9,882)

Net cash provided by (used in) operating activities (40,023) (192,438)

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(Millions of yen)

FY2017

(April 1, 2017 to

March 31, 2018)

FY2018

(April 1, 2018 to

March 31, 2019)

Cash flows from investing activities

Purchase of investment securities (11,711) (5,673)

Proceeds from sales or redemption of investment

securities 14,712 1,458

Purchase of property, plant and equipment, and

intangible assets (37,578) (27,339)

Proceeds from sale of property, plant and equipment, and

intangible assets 20 33

Purchase of investment property (7,531) (8,028)

Payments for acquisition of subsidiaries (951) －

Payments for loans receivable (1,503) (664)

Collection of loans receivable 17 27

Other (609) (126)

Net cash provided by (used in) investing activities (45,134) (40,313)

Cash flows from financing activities

Net increase (decrease) in short-term borrowings 18,000 (8,000)

Net increase (decrease) in commercial papers 31,500 121,500

Payment for securitization (20,000) －

Proceeds from long-term borrowings 104,700 115,900

Repayments of long-term borrowings (69,656) (55,364)

Proceeds from issuance of bonds 84,694 94,547

Redemption of bonds (50,000) (20,026)

Repayments of lease obligations (561) (603)

Payments for acquisition of interests in subsidiaries from

non-controlling interests (10) (23)

Proceeds from sale of treasury shares － 0

Payments for purchase of treasury shares (1) (0)

Dividends paid (5,719) (5,719)

Net cash provided by (used in) financing activities 92,945 242,211

Effect of exchange rate changes on cash and cash

equivalents (72) 3

Net increase (decrease) in cash and cash equivalents 7,714 9,462

Cash and cash equivalents at beginning of period 65,465 73,179

Cash and cash equivalents at end of period 73,179 82,642

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(6) Segment information, etc.

(i) General information regarding reportable segments

The Group’s reportable segments are components of the Group for which separate financial information is available, and

which are subject to regular review by the Board of Directors for the purpose of making decisions about the allocation of

management resource and assessing the segments’ performance.

The Company and its consolidated subsidiaries separately develop and conduct business activities that directly relate to their

various customers, and that are mainly based on market and customer service offerings. In accordance with these

considerations, the Group’s reportable segments are classified by market and customer service offerings and comprise the

“Credit Service”, “Lease”, “Finance”, “Real Estate Related” and “Entertainment” business segments.

The Credit Service business segment mainly consists of the credit card business, which is the Group’s major segment, and

various peripheral businesses closely related to the credit card business.

The Lease business segment operates the Group’s leasing business which is centered on the leasing of office equipment.

The Finance business segment consists of the credit guarantee business and the finance related business.

The Real Estate Related business segment comprises the real estate business and the real estate leasing business.

In the Entertainment business, the Group is developing an amusement business centered on the management of amusement

centers/arcades.

The Group do not allocate assets and liabilities to operating segment information used by the Board of Directors.

(ii) Information regarding measurement basis

The accounting methods and policies for the reportable segments are identical to the treatment described in “3. Consolidated

Financial Statements and Main Notes (6) Notes on Consolidated Financial Statements (Important Accounting Policies)” on

page 16 of the attached document. The profit in the reportable segments is business profit. Intersegment internal income and

transfer amounts are based on prevailing market prices.

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(iii) Information regarding profit or loss by reportable segments

For the fiscal year ended March 31, 2018 (from April 1, 2017 to March 31, 2018)

(Unit: Millions of yen)

Credit service

Lease Finance Real estate

related Entertainme

nt Total

Adjustments (Note 2)

Consolidated

Revenue 221,254 12,877 35,536 37,389 51,272 358,331 – 358,331

Net revenue 222,452 12,882 35,536 15,481 9,288 295,641 (2,391) 293,250

Segment profit

(Business profit) 27,913 4,442 16,659 6,167 2,126 57,309 5 57,314

(Reconciling items)

The adjustment amount for

financial assets by

applying the effective

interest rate method

–

Other reconciliations

(Other income) 8,812


(Other expenses) (13,277)

Subtotal (4,464)

Profit before tax 52,850

For the fiscal year ended March 31, 2019 (from April 1, 2018 to March 31, 2019)

(Unit: Millions of yen)

Credit service

Lease Finance Real estate

related Entertainme

nt Total

Adjustments (Note 2)

Consolidated

Revenue 227,102 12,580 39,231 42,099 50,827 371,842 – 371,842

Net revenue 228,518 12,586 39,231 18,113 8,761 307,212 (2,357) 304,855

Segment profit

(Business profit) 16,915 5,720 19,209 8,305 2,078 52,229 3 52,233

(Reconciling items)

The adjustment amount for

financial assets by

applying the effective

interest rate method

(951)


(Other income) –


(Other expenses) (5,517)

Subtotal (6,469)

Profit before tax 45,763

(Notes) 1. Business profit is a profit indicator calculated by subtracting the adjustment amount by the application of the effective

interest rate method for financial assets and the non–recurring one–time profit and loss items from the profit before tax.

2. Adjustments include inter–segment eliminations.

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(iv) Information related to products and services

This information is omitted because the classification of products and services is the same as the classification for those of

reportable segments.

(v) Information related to geographical areas

Revenue by region is not presented because revenues from external customers in Japan account for the majority of revenues

in the Consolidated Statement of Income.

In addition, the book value of non–current assets located in Japan accounts for the majority of non–current assets in the

statement of Consolidated Financial Position, thus, the disclosure of non–current assets classified by region has been

omitted.

(vi) Breakdown of Reconciliations

A breakdown of reconciliations is as follows:

(Millions of yen)

FY2017

(April 1, 2017 to

March 31, 2018)

FY2018

(April 1, 2018 to

March 31, 2019)

The adjustment amount for financial assets by applying

the effective interest rate method － (951)

Reconciliations (Other income) 8,812 －

Gain on sales of investment securities 8,536 －

Other 276 －

Reconciliations (Other expenses) (13,277) (5,517)

System transfer cost (12,969) (3,299)

Loss on valuation of investment securities (stocks,

etc.)

(102) (1,266)

Impairment losses related to associates and joint

ventures accounted for using the equity method

－ (506)

Other (205) (445)

Total (4,464) (6,469)

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4. Non–Consolidated Financial Statements

(1) Non–Consolidated Balance Sheets (Millions of yen)

FY2017

(As of March 31, 2018)

FY2018


Assets

Current assets

Cash and deposits 53,802 60,052

Accounts receivable – installment 1,851,106 2,087,817

Lease investment assets 231,774 241,129

Operational investment securities 34,761 35,140

Merchandise 113 113

Supplies 1,436 2,551

Prepaid expenses 4,628 4,067

Short–term loans receivable from subsidiaries and

associates

236,786 272,855

Accounts receivable – other 19,817 17,917

Other 3,155 5,031

Allowance for doubtful accounts (44,495) (47,660)

Total current assets 2,392,887 2,679,016

Non–current assets

Property, plant and equipment

Buildings, net 5,573 5,312

Vehicles, net 0 0

Equipment, net 1,720 1,293

Land 6,904 6,904

Leased assets, net 1,261 1,336

Construction in progress 47 16

Total property, plant and equipment 15,506 14,862

Intangible assets

Leasehold right 14 14

Software 143,179 143,239

Leased assets 254 174

Software in progress 4,630 958

Other 253 252

Total intangible assets 148,331 144,639

Investments and other assets

Investment securities 98,708 88,223

Shares of subsidiaries and associates 55,881 56,991

Investments in capital 0 159

Investments in capital of subsidiaries and associates 6,357 7,080

Long–term loans receivable 10,089 10,079

Long–term loans receivable from subsidiaries and

associates

32,108 34,270

Long–term prepaid expenses 28,245 29,590

Guarantee deposits 2,854 2,772

Deferred tax assets 32,764 31,214

Other 5,951 6,614

Allowance for doubtful accounts (9) (9)

Total investments and other assets 272,950 266,984

Total non–current assets 436,789 426,487

Deferred assets

Bond issuance cost 1,620 1,780

Total deferred assets 1,620 1,780

Total assets 2,831,296 3,107,284

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(Millions of yen)

FY2017


FY2018


Liabilities

Current liabilities

Notes payable – trade 0 0

Accounts payable – trade 295,057 315,926

Short–term loans payable 247,960 239,960

Current portion of long–term loans payable 54,900 91,279

Current portion of bonds 20,000 30,000

Commercial papers 389,500 511,000

Lease obligations 445 487

Accounts payable – other 4,931 4,054

Accrued expenses 17,886 17,517

Income taxes payable 3,887 1,480

Deposits received 10,811 10,488

Unearned revenue 402 406

Provision for bonuses 1,687 1,717

Provision for bonuses for directors (and other officers) 149 113

Provision for loss on interest repayment 8,558 5,362

Allowance for losses on collecting gift tickets 139 135

Deferred installment income 9,579 9,339

Other 3,334 3,813

Total current liabilities 1,069,232 1,243,082

Non–current liabilities

Bonds payable 320,000 385,000

Long–term loans payable 899,299 923,920

Long–term loans payable under credit fluidity 20,000 20,000

Lease obligations 1,236 1,192

Provision for loss on guarantees 7,000 7,917

Provision for point card certificates 101,319 104,963

Provision for loss on interest repayment 12,795 10,889

Guarantee deposits received 1,152 1,023

Other 2,429 1,763

Total non–current liabilities 1,365,233 1,456,668

Total liabilities 2,434,465 2,699,750

Net assets

Shareholders’ equity

Capital stock 75,929 75,929

Capital surplus

Legal capital surplus 82,497 82,497

Other capital surplus 1,602 1,602

Total capital surpluses 84,100 84,100

Retained earnings

Legal retained earnings 3,020 3,020

Other retained earnings

General reserve 215,455 232,455

Retained earnings brought forward 34,592 37,749

Total retained earnings 253,067 273,224

Treasury shares (52,595) (52,596)

Total shareholders’ equity 360,501 380,657

Valuation and translation adjustments

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FY2017


FY2018


Valuation difference on available–for–sale securities 36,788 27,294

Deferred gains or losses on hedges (458) (418)

Total valuation and translation adjustments 36,329 26,875

Total net assets 396,831 407,533

Total liabilities and net assets 2,831,296 3,107,284

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(2) Non-Consolidated Statements of Income

(Millions of yen)

FY2017

(April 1, 2017 to

March 31, 2018)

FY2018

(April 1, 2018 to

March 31, 2019)

Operating revenue

Income from the credit service business

Revenue from credit card business 131,828 135,751

Credit card cashing revenue 32,822 32,538

Loan certificates Revenue 896 680

Business agency revenue 27,229 28,439

Income from the Credit–related services 9,206 9,802

Income from the credit service business 201,984 207,213

Income from the Lease business revenue 12,863 12,721

Income from the finance business

Revenue from credit guarantee 17,101 16,970

Finance related Revenue 13,183 17,651

Income from the finance business 30,285 34,621

Income from the real estate related business

Revenue from the real estate related business 23 22

Cost of the real estate related business 1 1

Income from the real estate related business 21 20

Financial revenue 4,710 4,440

Total operating revenue 249,865 259,018

Operating expenses

Selling, general and administrative expenses 207,093 215,726

Financial expenses

Interest expenses 8,795 8,896

Other 1,076 851

Total financial expenses 9,872 9,748

Total operating expenses 216,965 225,474

Operating profit 32,900 33,543

Non–operating income 6,090 6,334

Non–operating expenses 119 243

Ordinary profit 38,871 39,634

Extraordinary income

Gain on sales of investment securities 8,515 464

Other 275 –

Total extraordinary income 8,790 464

Extraordinary losses

Loss on disposal of non–current assets 124 19

Loss on valuation of investment securities 102 11

Loss on valuation of investments in capital – 945

Loss on valuation of shares of subsidiaries and associates 424 561

System transfer cost 12,969 1,976

Total extraordinary losses 13,621 3,514

Profit before income taxes 34,040 36,585

Income taxes – current 6,896 4,719

Income taxes – deferred 4,953 5,989

Total income taxes 11,850 10,709

Profit 22,190 25,875

- 19 -

(3) Non-Consolidated Statements of Changes in Equity

FY2017 (April 1, 2017 to March 31, 2018)

(Millions of yen)


Capital

stock

Capital surplus Retained earnings

Treasury

shares

Total

shareholders’

equity

Legal

capital

surplus

Other

capital

surplus

Total

capital

surplus

Legal

retained

earnings

Other retained earnings

Total

retained

earnings

General

reserve

Retained

earnings

brought

forward

Balance at beginning of

current period 75,929 82,497 1,602 84,100 3,020 200,455 33,121 236,596 (52,594) 344,031

Changes of items during

period

Provision of general

reserve 15,000 (15,000) – –

Dividends of surplus (5,719) (5,719) (5,719)

Profit 22,190 22,190 22,190

Purchase of treasury shares (1) (1)

Disposal of treasury shares

Net changes of items other

than shareholders’ equity

Total changes of items during

period – – – – – 15,000 1,471 16,471 (1) 16,469

Balance at end of current

period 75,929 82,497 1,602 84,100 3,020 215,455 34,592 253,067 (52,595) 360,501


Total net

assets

Valuatio

n

differenc

e on

available

–for–sale

securitie

s

Deferred

gains or

losses on

hedges

Total

valuation

and

translatio

n

adjustme

nts


current period 31,095 (649) 30,445 374,477


period

Provision of general reserve –

Dividends of surplus (5,719)

Profit 22,190

Purchase of treasury shares (1)

Disposal of treasury shares

Net changes of items other than shareholders’ equity 5,692 191 5,884 5,884


period 5,692 191 5,884 22,353


period 36,788 (458) 36,329 396,831

- 20 -

FY2018 (April 1, 2018 to March 31, 2019)

(Millions of yen)


Capital

stock

Capital surplus Retained earnings

Treasury

shares

Total

shareh

olders’

equity

Legal

capital

surplu

s

Other

capital

surplu

s

Total

capital

surplu

s

Legal

retaine

d

earnings

Other retained

earnings

Total

retaine

d

earnings

Gener

al

reserv

e

Retain

ed

earnin

gs

broug

ht forwar

d Balance at beginning of

current period 75,929 82,497 1,602 84,100 3,020 215,455 34,592 253,067 (52,595) 360,501


period

Provision of general reserve 17,000 (17,000) – –

Dividends of surplus (5,719) (5,719) (5,719)

Profit 25,875 25,875 25,875

Purchase of treasury shares (0) (0)

Disposal of treasury shares (0) (0) 0 0


than shareholders’ equity


period – – (0) (0) – 17,000 3,156 20,156 (0) 20,156


period 75,929 82,497 1,602 84,100 3,020 232,455 37,749 273,224 (52,596) 380,657


Total net

assets

Valuation

differenc

e on

available

–for–sale

securitie

s

Deferred

gains or

losses on

hedges

Total valuation

and

translatio

n

adjustme

nts


current period 36,788 (458) 36,329 396,831


period

Provision of general reserve –

Dividends of surplus (5,719)

Profit 25,875

Purchase of treasury shares (0)

Disposal of treasury shares 0


than shareholders’ equity (9,493) 39 (9,453) (9,453)


period (9,493) 39 (9,453) 10,702


period 27,294 (418) 26,875 407,533

Translation of excerpted sections Consolidated …...Financial Statements and Main Notes (6) Notes...

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Transcript of Translation of excerpted sections Consolidated …...Financial Statements and Main Notes (6) Notes...